Production release and gold price dividend resonance, Zijin Mining's Q3 net profit attributable to shareholders soared by 57.14% | Financial report insights

On October 17th, Zijin Mining released its third-quarter performance, and here are the key points:

• The net profit attributable to shareholders in the third quarter was 14.57 billion yuan, a year-on-year increase of 57.14% and a quarter-on-quarter increase of 11.02%; the revenue for the third quarter was 86.489 billion yuan, a year-on-year increase of 8.14%.
• The net profit attributable to shareholders for the first three quarters was 37.864 billion yuan, a year-on-year increase of 55.45%; the net profit excluding non-recurring items was 34.127 billion yuan, a year-on-year increase of 43.71%.
• The comprehensive gross profit margin for Q3 was 27.23%, an increase of 2.71 percentage points quarter-on-quarter; the gross profit margin for mining enterprises was 61.27%.

Core business progress in the first three quarters:

• The gold production was 65 tons, a year-on-year increase of 20%, with Q3 production at 24 tons, a quarter-on-quarter increase of 7%, mainly driven by projects such as the Akyem Gold Mine in Ghana and the Sawayaerdun project in Xinjiang.
• The copper production was 830,000 tons, a year-on-year increase of 5%; Q3 production was 260,000 tons, a quarter-on-quarter decrease of 6%, mainly affected by the flooding incident at the Kamoa Copper Mine.
• In the first three quarters, 11,000 tons of lithium carbonate were produced, and the first phase of the lithium mine project in Argentina was put into production at the end of Q3.

It is worth mentioning that Zijin Gold International successfully went public at HKD 71.59 per share, raising HKD 28.7 billion, and the stock price has risen to HKD 147.80, an increase of over 100%. The company distributed cash dividends of 5.847 billion yuan in the first three quarters.

Performance Explosion Amid Rising Gold Prices

Zijin Mining delivered a performance report in Q3 that caught the market's attention. The net profit attributable to shareholders for the single quarter was 14.572 billion yuan, a year-on-year surge of 57.14%, which is quite impressive even against the backdrop of resource stocks generally benefiting from rising commodity prices.

The core logic behind the significant growth in performance is quite clear: the release of production combined with the benefits of rising gold prices. The company's gold production was 65 tons, a year-on-year increase of 20%, which far exceeds the industry average. More importantly, the company accurately seized the window of rising gold prices— the average selling price of gold concentrate in the first three quarters was 685.21 yuan per gram, a year-on-year increase of 41%; the average selling price of gold bars was 746.43 yuan per gram, a year-on-year increase of 44%.

From the quarter-on-quarter data, the company's net profit attributable to shareholders in the third quarter increased by 11.02%, with a comprehensive gross profit margin of 27.23%, an increase of 2.71 percentage points quarter-on-quarter; the gross profit margin for mining enterprises was 61.27%, an increase of 0.78 percentage points quarter-on-quarter. This indicates that even with slight fluctuations in production, profitability continues to improve